Stablecoins continue to dictate the conversation in the crypto assets industry. USDC, while often overlooked, is currently breaking out to attempt and rival Tether. Growing the market beyond $1 billion has been a big milestone for the project so far.
The Rise of USDC
When the USDC stablecoin was launched, many people doubted if it would succeed. In an industry dominated by Tether’s USDT, there seems to be little room for other pegged currencies. Slowly but surely, things have begun to change in favor of alternative stablecoins. USD Coin has reaped the rewards of this shift.
Becoming the leading digital dollar will not come easy. Although USDC surpassed $1 billion in total market cap, it remains well behind Tether in this particular regard. That being said, going from a much lower valuation to over $1 billion in 21 months is nothing to sneeze at either.
Contributing to the growth in market cap are the number of exchanges supporting USD Coin. This list has grown very vast in the past 21 months, confirming there is a demand for alternative stablecoins today. More importantly, many wallets now support this asset as well. Being a part of the growing DeFi ecosystem also makes USDC a lot more appealing as of late.
Projects such as USD Coin show that digitizing a dollar can be done in this modern day and age. Part of its appeal is how it is not tied to government of central bank efforts. A decentralized digital dollar has massive potential, even beyond the crypto assets industry. Many businesses are looking for low-cost payment solutions without having to worry about volatility.
Active Addresses on Track to hit 10,000
Sustaining the growth of USD Coin can only be done if the community actively participates. So far, the number of active addresses holding USD Coins has increased significantly, and peaked at 8,628 a few days ago. Following a brief dip yesterday and today, it’s plausible to assume that this figure will reach 10,000 in the not-so-distant future. That would be another major milestone for the USDC team.
As competition emerges in the stablecoin industry, it will be interesting to see who can come out on top in the long run. After all, there is ample competition, and the DeFi yields on stablecoins should not be underestimated. Making the crypto assets industry more appealing and active will require interoperability and collaboration on all fronts.
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